NZD/USD: Rise in US inflation to trigger another wave of risk aversion, pummeling the kiwi – ANZ
NZD/USD is back above 0.63. As economists at ANZ Bank note, US CPI data represents major event risk, with a hot print to trigger a wave of risk aversion, weighing on the kiwi.
US CPI data poses binary risks
“NZ considerations are being all but ignored by markets and this is the USD show, and it’s benefiting from a flight-to-safety bid amid softness in commodities and risk assets.”
“US CPI data poses binary risks. While a softer result (as the street is expecting) will be mildly relieving, a rise in inflation has potential to trigger another wave of risk aversion (likely at the expense of the kiwi).”
“Support 0.5940/0.6230 Resistance 0.6465/0.6545/0.6700”
See – US CPI Preview: Forecasts from 12 major banks, the first decelerating print in a long time
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
